The present disclosure relates to computing systems and, in particular, to management of security keys among computer systems including Bitcoin management systems.
Bitcoin is a software based peer-to-peer payment system. Bitcoins (especially personal Bitcoins) are typically stored in a digital wallet, which exists either in the cloud or on a user's computer or mobile device. The digital wallet functions as a virtual bank account that allows users to send and receive Bitcoins and make payments. However, only users' credentials for Bitcoin ownership are stored in the digital wallets. A Bitcoin payment occurs by transfer of value between Bitcoin addresses that gets recorded in a publically accessible transaction ledger (the “blockchain”), where Bitcoin address identifiers are listed.
Security of digital wallets is an increasing concern in view of hackers stealing Bitcoins due to insufficient security mechanisms for digital wallets. The most sensitive data in a digital wallet is the collection of private keys associated with the Bitcoin addresses that occur in the public blockchain. Some Bitcoin owners have resorted to dividing their Bitcoins between less secure “hot storage” residing in a network accessible digital wallet and more secure “cold storage” residing on a non-network accessible device such as a removable non-volatile memory device.